Pidilite Industries Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Aug 25
- 4 min read
by KarNivesh | 25 August, 2025
When you hear the name Fevicol, chances are you immediately think of strong glue that “never lets go.” That’s the magic of Pidilite Industries, the company behind Fevicol and many other popular household products. Over the decades, Pidilite has become a trusted name in adhesives, sealants, and construction chemicals—not just in India but also in global markets.
But beyond its famous products, how does Pidilite look as an investment? Let’s break down its business story, financial health, and stock market performance in simple terms.
Pidilite Industries' financial performance showing steady revenue growth and strong earnings improvement from 2021-2025
Company Overview
Pidilite was founded in 1959 with just one product—Fevicol. Today, it owns more than 25 well-known brands like FeviKwik, Dr. Fixit, M-Seal, and Roff. The company runs two main divisions:
Consumer & Bazaar (C&B) – This makes up around 80% of its revenue and includes adhesives, sealants, waterproofing products, and even art supplies.
Business-to-Business (B2B) – The remaining 20% comes from industrial adhesives, resins, and specialty chemicals.
Its reach is massive, covering over 28,000 villages in India through 14,000 branded outlets called Pidilite ki Duniya. This strong network gives it a real edge over competitors.
Key financial ratios trend showing strong ROE/ROCE performance but elevated PE valuation for Pidilite Industries (2021-2025)
Recent Highlights
Pidilite has been making headlines for the right reasons:
Strong Quarterly Results: In the first quarter of FY26, revenue rose 10.6% compared to last year, while net profit jumped nearly 19%. Even more impressive, product volumes grew close to 10%.
Shareholder Rewards: For the first time in 15 years, Pidilite announced a 1:1 bonus share issue (meaning every shareholder gets an extra share for each one they already hold) and a special dividend of ₹10 per share.
Capacity Growth: The company is expanding production across 20 plants, keeping capacity utilization high at 70–75%.
Clearly, Pidilite is not just sitting comfortably; it’s actively growing and rewarding its investors.
Financial Strength
Numbers often tell the real story, and Pidilite’s financials shine:
Steady Growth: From 2021 to 2025, revenue grew from ₹72.5 billion to ₹131.4 billion—a healthy 12.6% annual growth rate.
Rising Profits: Net income nearly doubled in the same period, moving from ₹11.3 billion to ₹20.7 billion.
Shareholder Value: Earnings per share (EPS) rose from ₹22 in 2021 to ₹41 in 2025, meaning each share became much more profitable.
Its return on equity (ROE) and return on capital employed (ROCE) are both very strong, showing efficient use of money. On top of that, Pidilite has almost no debt, which makes it financially very safe.
Stock Market Performance
Pidilite’s stock has rewarded patient investors:
Over five years, its stock grew at an impressive annual rate of 111% CAGR.
Annual returns were consistently positive, with even tough years showing growth.
Currently, the stock trades around ₹3,087, close to its 52-week high.
But there’s a catch—Pidilite is expensive. Its price-to-earnings (P/E) ratio is 71.8x, far above the market average. This means investors are willing to pay a premium for its reliability, but it also signals that expectations are very high.
Strengths That Make It Stand Out
Iconic Brands: Fevicol has become a household name, almost like “Xerox” for photocopying. Such strong branding ensures customer loyalty.
Wide Distribution: From big cities to rural markets, Pidilite products are everywhere.
Innovation: The company invests in eco-friendly and sustainable products, which aligns with the future of construction and chemicals.
Solid Balance Sheet: Low debt and strong cash flows make it financially secure.
Risks to Keep in Mind
Even strong companies face challenges:
Raw Material Costs: Pidilite depends on certain chemicals derived from crude oil, and price swings can hurt its margins.
Construction Dependence: About a third of its sales are linked to the construction sector, which can be cyclical and sensitive to economic slowdowns.
High Valuation: The stock is already priced for perfection. Any slowdown in growth could lead to sharp corrections.
Market Outlook
India’s adhesives and construction chemicals markets are expected to grow rapidly in the coming decade, thanks to infrastructure projects, urban housing, and rural expansion. Pidilite, with its dominant position and trusted brand, is well-placed to ride this wave.
It also has opportunities to expand internationally, especially in Southeast Asia and the Middle East. Plus, with ongoing digital and automation initiatives, it’s preparing to stay efficient and competitive.
Should You Invest?
If you’re a long-term, growth-oriented investor, Pidilite looks like a solid company to hold. Its fundamentals are strong, it has little debt, and its brand power is unmatched. However, the high price of the stock means new investors should be cautious. Entering gradually—rather than investing a lump sum—might be the wiser strategy.
For existing shareholders, holding on makes sense, as the company’s growth story is far from over.
Final Thoughts
Pidilite is more than just Fevicol; it’s a story of consistent growth, strong management, and a powerful brand legacy. While the stock is costly, the business itself is sticky—just like its most famous glue. For investors who can handle short-term price swings and focus on the long term, Pidilite offers both stability and growth.
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